The Delhi Anti-Corruption Branch has registered an FIR against Sheila Dikshit and Arvind Kejriwal in connection with a Rs 400-crore water tanker scam. ACB chief MK Meena said the agency will question both leaders soon, reported The Times of India. Following the development, the Aam Aadmi Party chief hit out at Prime Minister Narendra Modi and said he was glad that Modi has accepted that "his fight is directly with" the Delhi chief minister, according to NDTV.

"Modiji, you did not register FIR against [Robert] Vadra, did not register FIR against Sonia, did not register FIR in any cases, citing which you became the PM. All the investigating agencies under you – CBI, police, ACB. You have asked them to go after me. You conducted CBI raid on me. Got nothing. Now, welcome your FIR... I am glad that you have admitted that your fight is directly with me," Kejriwal said on Twitter.

The FIRs were registered under Prevention of Corruption Act, Section 13 (1D), on misuse of power, and sections 120B and 409, which refer to hatching of a criminal conspiracy and criminal breach of trust by a public servant, stated the report by the news daily.

In 2012, the Delhi Jal Board awarded tenders to private companies for leasing 385 stainless steel water tankers. Sheila Dikshit, who was then Delhi chief minister, was the chairperson of the board. The Kejriwal government had ordered a team to investigate the deal in June 2015, which found serious irregularities in the contract. The inquiry committee filed their report in August.

On June 17, Lieutenant Governor Najeeb Jung forwarded the report to the ACB, along with a complaint filed by Opposition leader Vijender Gupta who has accused Kejriwal of deliberately ignoring the 125-page document for around 10 months.